Current Events > Coinbase is a good way to scam the credit card companies

(+) Yeah! (+)

It's like free cash. I can deposit up to $1,500 a week from my credit card to Coinbase. Then I can just sell it and it turns into cash in my bank account. Winning?

If there's a crypto crash, you're going to end up deep in debt.
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Pepys Monster posted...

If there's a crypto crash, you're going to end up deep in debt.

I'm talking I can sell it right after I buy it. It's instant.

How exactly are you making money here?
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But you then owe $1500 to your credit card company
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Anteaterking posted...

But you then owe $1500 to your credit card company

Without the exorbitant fee that I would be charged if I tried taking a cash advance from the credit card.

Plus I can take it from one and use it to pay off a different one!

You mean basically a free cash advance?
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Yeah it's digital currency

So basically TC buys $1,500 of cryptocash, sells it for liquid cash, then pays back the card?

I don't get it
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Muffinz0rz posted...

Yeah it's digital currency

So basically TC buys $1,500 of cryptocash, sells it for liquid cash, then pays back the card?

I don't get it

Two different cards, genius. You can't use one credit card to pay another one, but using this exploit you can. You could also help with your interest charges as well just paying it back into the one you took it from.

KazumaKiryu posted...

Muffinz0rz posted...

Yeah it's digital currency

So basically TC buys $1,500 of cryptocash, sells it for liquid cash, then pays back the card?

I don't get it

Two different cards, genius. You can't use one credit card to pay another one, but using this exploit you can. You could also help with your interest charges as well just paying it back into the one you took it from.

But...you're always going to owe $1,500 to someone, and if your crypto-cash goes down in value, you lose money.
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Muffinz0rz posted...

KazumaKiryu posted...

Muffinz0rz posted...

Yeah it's digital currency

So basically TC buys $1,500 of cryptocash, sells it for liquid cash, then pays back the card?

I don't get it

Two different cards, genius. You can't use one credit card to pay another one, but using this exploit you can. You could also help with your interest charges as well just paying it back into the one you took it from.

But...you're always going to owe $1,500 to someone, and if your crypto-cash goes down in value, you lose money.

Yeah, but he's talking about using it like a cash advance without a fee.
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Muffinz0rz posted...

Yeah it's digital currency

So basically TC buys $1,500 of cryptocash, sells it for liquid cash, then pays back the card?

I don't get it

If you use one credit card to pay off another credit card, this is called a balance transfer and there are generally huge fees associated with it to the order of 10/20% usually with a financing benefit.

But, if you get a new card with introductory financing, you can charge, say $1,500 to the card, get financing, then sell the coin to pay off the other card.

So basically it's a balance transfer but it lets you dodge the balance transfer fee, and I see 0 reason why it wouldn't work.

Rich people hire teams of guys to think of shit like this but with taxes.
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ChromaticAngel posted...

Muffinz0rz posted...

Yeah it's digital currency

So basically TC buys $1,500 of cryptocash, sells it for liquid cash, then pays back the card?

I don't get it

If you use one credit card to pay off another credit card, this is called a balance transfer and there are generally huge fees associated with it to the order of 10/20% usually with a financing benefit.

But, if you get a new card with introductory financing, you can charge, say $1,500 to the card, get financing, then sell the coin to pay off the other card.

So basically it's a balance transfer but it lets you dodge the balance transfer fee, and I see 0 reason why it wouldn't work.

Rich people hire teams of guys to think of shit like this but with taxes.

But then aren't you down $1,500 with that second card?
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are you some kind of crazy person?
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chill02 posted...

are you some kind of crazy person?

0_o

Am I... no...

Muffinz0rz posted...

But then aren't you down $1,500 with that second card?

Yes, but you're $1,500 down with 0% interest for 6 months.

Which is much much much better than just being $1,500 down.
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ChromaticAngel posted...

Muffinz0rz posted...

But then aren't you down $1,500 with that second card?

Yes, but you're $1,500 down with 0% interest for 6 months.

Which is much much much better than just being $1,500 down.

But you're still "down" $1,500, so it's not exactly free.
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Muffinz0rz posted...

But then aren't you down $1,500 with that second card?

You would. But you would have 1 more month to get that money and pay your debt without incurrencing on late payments fees. If you dont have the money then just do the process again and you would be able to not pay any fees for the debt you have.

Of course that just screams problems if you never intend to actually pay off your debt.
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Buy $5k in bitcoins

Sell when bitcoins rises a bit, den pay credit card and den profit
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V-E-G-Y- posted...

Buy $5k in bitcoins

Sell when bitcoins rises a bit, den pay credit card and den profit

what if it goes down
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Muffinz0rz posted...

ChromaticAngel posted...

Muffinz0rz posted...

But then aren't you down $1,500 with that second card?

Yes, but you're $1,500 down with 0% interest for 6 months.

Which is much much much better than just being $1,500 down.

But you're still "down" $1,500, so it's not exactly free.

It's not about free money it's about avoiding interest and fees.
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But coinbase charges you a 4% fee for charges made with a credit card.
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It hurts your credit when you max your credit card (or even use a large percentage of your credit).
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ChromaticAngel posted...

Muffinz0rz posted...

ChromaticAngel posted...

Muffinz0rz posted...

But then aren't you down $1,500 with that second card?

Yes, but you're $1,500 down with 0% interest for 6 months.

Which is much much much better than just being $1,500 down.

But you're still "down" $1,500, so it's not exactly free.

It's not about free money it's about avoiding interest and fees.

Then what's the point if you have to pay it back anyways?

TC made it sound like it's free money in the OP.
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krazychao5 posted...

But coinbase charges you a 4% fee for charges made with a credit card.

I guarantee you 4% is much less than whatever your interest on your credit cards is.
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Muffinz0rz posted...

V-E-G-Y- posted...

Buy $5k in bitcoins

Sell when bitcoins rises a bit, den pay credit card and den profit

what if it goes down

what if it doesn't? TC is basically gambling

Muffinz0rz posted...

Then what's the point if you have to pay it back anyways?

ChromaticAngel posted...

avoiding interest and fees.

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V-E-G-Y- posted...

Buy $5k in bitcoins

Sell when bitcoins rises a bit, den pay credit card and den profit

Shut da fuck up
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ChromaticAngel posted...

Muffinz0rz posted...

Then what's the point if you have to pay it back anyways?

ChromaticAngel posted...

avoiding interest and fees.

I must be missing something

It's like he gains $1,500, then pays back $1,500 interest free.

The only way he profits is if bitcoin goes up, which is also a double-edged sword because it can go down too.
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ChromaticAngel posted...

krazychao5 posted...

But coinbase charges you a 4% fee for charges made with a credit card.

I guarantee you 4% is much less than whatever your interest on your credit cards is.

Yeah, but not as good as opening a new card with balance transfer to get the same effect that TC is talking about without the added hassle
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krazychao5 posted...

ChromaticAngel posted...

krazychao5 posted...

But coinbase charges you a 4% fee for charges made with a credit card.

I guarantee you 4% is much less than whatever your interest on your credit cards is.

Yeah, but not as good as opening a new card with balance transfer to get the same effect that TC is talking about without the added hassle

Isn't that how people in debt stay in debt? By opening new cards to pay off other cards?
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Muffinz0rz posted...

krazychao5 posted...

ChromaticAngel posted...

krazychao5 posted...

But coinbase charges you a 4% fee for charges made with a credit card.

I guarantee you 4% is much less than whatever your interest on your credit cards is.

Yeah, but not as good as opening a new card with balance transfer to get the same effect that TC is talking about without the added hassle

Isn't that how people in debt stay in debt? By opening new cards to pay off other cards?

they stay in debt by doing it and then just not paying it off.
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ChromaticAngel posted...

Muffinz0rz posted...

krazychao5 posted...

ChromaticAngel posted...

krazychao5 posted...

But coinbase charges you a 4% fee for charges made with a credit card.

I guarantee you 4% is much less than whatever your interest on your credit cards is.

Yeah, but not as good as opening a new card with balance transfer to get the same effect that TC is talking about without the added hassle

Isn't that how people in debt stay in debt? By opening new cards to pay off other cards?

they stay in debt by doing it and then just not paying it off.

Okay see this is where there's a disconnect -- what do they gain by opening a new card and paying off the other one, instead of just straight up paying off the other one?
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Muffinz0rz posted...

ChromaticAngel posted...

Muffinz0rz posted...

krazychao5 posted...

ChromaticAngel posted...

krazychao5 posted...

But coinbase charges you a 4% fee for charges made with a credit card.

I guarantee you 4% is much less than whatever your interest on your credit cards is.

Yeah, but not as good as opening a new card with balance transfer to get the same effect that TC is talking about without the added hassle

Isn't that how people in debt stay in debt? By opening new cards to pay off other cards?

they stay in debt by doing it and then just not paying it off.

Okay see this is where there's a disconnect -- what do they gain by opening a new card and paying off the other one, instead of just straight up paying off the other one?

they may not have enough money to pay off the whole thing at once.

thus, by shifting to a 0% financing card, they can get a few extra months to pay it off at 0 interest.

it requires you to actually stop spending and start saving money to pay down your debt. The trap people fall into is they say "oh, I have 0% interest! I can spend more money now!" and then 10 years later they're in $40k debt being bounced around between credit cards because even 10% interest is more money than they make in a month.
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ChromaticAngel posted...

Muffinz0rz posted...

ChromaticAngel posted...

Muffinz0rz posted...

krazychao5 posted...

ChromaticAngel posted...

krazychao5 posted...

But coinbase charges you a 4% fee for charges made with a credit card.

I guarantee you 4% is much less than whatever your interest on your credit cards is.

Yeah, but not as good as opening a new card with balance transfer to get the same effect that TC is talking about without the added hassle

Isn't that how people in debt stay in debt? By opening new cards to pay off other cards?

they stay in debt by doing it and then just not paying it off.

Okay see this is where there's a disconnect -- what do they gain by opening a new card and paying off the other one, instead of just straight up paying off the other one?

they may not have enough money to pay off the whole thing at once.

thus, by shifting to a 0% financing card, they can get a few extra months to pay it off at 0 interest.

it requires you to actually stop spending and start saving money to pay down your debt. The trap people fall into is they say "oh, I have 0% interest! I can spend more money now!" and then 10 years later they're in $40k debt being bounced around between credit cards because even 10% interest is more money than they make in a month.

So TC is just putting himself in a debt loop just to get a little cash?
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Muffinz0rz posted...

So TC is just putting himself in a debt loop just to get a little cash?

Whether he gets stuck in a debt loop or not is up to him and his ability to actually pay off debt while bouncing it around.
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Muffinz0rz posted...

Isn't that how people in debt stay in debt? By opening new cards to pay off other cards?

Only if you can't catch up.

Maybe someone can pay off $1,500 right now, but it'd be tight. Let's say their card has 15% interest. They either fork the cash over, or get charged 15% per month while they slowly pay it off.

Transferring the debt to a 0% interest card allows you to pay off the $1,500 over the course of a year interest-free. And minimum payments are really low. So if you know you'll be in a financially better position in 12 months, or you know that you can stretch your budget out better by making $125 payments per month.

So in a lot of ways it can help you climb out of debt as well. It's a tool. Nothing more or less. Some people get themselves into trouble with it. Others cleverly know the fine print and basically stretch out paying the debt back over a longer period of time without spending anything on interest.
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Soviet_Poland posted...

Muffinz0rz posted...

Isn't that how people in debt stay in debt? By opening new cards to pay off other cards?

Only if you can't catch up.

Maybe someone can pay off $1,500 right now, but it'd be tight. Let's say their card has 15% interest. They either fork the cash over, or get charged 15% per month while they slowly pay it off.

Transferring the debt to a 0% interest card allows you to pay off the $1,500 over the course of a year interest-free. And minimum payments are really low. So if you know you'll be in a financially better position in 12 months, or you know that you can stretch your budget out better by making $125 payments per month.

So in a lot of ways it can help you climb out of debt as well. It's a tool. Nothing more or less. Some people get themselves into trouble with it. Others cleverly know the fine print and basically stretch out paying the debt back over a longer period of time without spending anything on interest.

So TC's OP is basically a lie

EDIT: Or, at best, misleading.
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Well my credit score has gone down 12 points this week if that tells you anything. >_>

KazumaKiryu posted...

Well my credit score has gone down 12 points this week if that tells you anything. >_>

Mine took a total hit of 40 just for opening a new card (first new card after I had one for six years as a student that I never used) because my average card age dropped from 6 years to 3 years.

But yeah, score is still an issue, but it'll come back.
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Does credit score even matter, if you have enough money and good income dey'll lend you big money even with crappy credit score lol
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Muffinz0rz posted...

Soviet_Poland posted...

Muffinz0rz posted...

Isn't that how people in debt stay in debt? By opening new cards to pay off other cards?

Only if you can't catch up.

Maybe someone can pay off $1,500 right now, but it'd be tight. Let's say their card has 15% interest. They either fork the cash over, or get charged 15% per month while they slowly pay it off.

Transferring the debt to a 0% interest card allows you to pay off the $1,500 over the course of a year interest-free. And minimum payments are really low. So if you know you'll be in a financially better position in 12 months, or you know that you can stretch your budget out better by making $125 payments per month.

So in a lot of ways it can help you climb out of debt as well. It's a tool. Nothing more or less. Some people get themselves into trouble with it. Others cleverly know the fine print and basically stretch out paying the debt back over a longer period of time without spending anything on interest.

So TC's OP is basically a lie

EDIT: Or, at best, misleading.

Yup. It's a "free" cash advance. Not free cash.
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V-E-G-Y- posted...

Does credit score even matter, if you have enough money and good income dey'll lend you big money even with crappy credit score lol

Yeah but I had gotten it up to 750 which is an Excellent score

I think he is talking about rewards cards.
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Returning_CEmen posted...

I think he is talking about rewards cards.

no card offers rewards worth the 4% fee you have to pay to coinbase.

while some cards have 5% cashback, that rate never applies to shit like coinbase.
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